Ermotti-led SPAC to help Italy’s Zegna go public in $3.2 bln US deal

MILAN, July 19 (Reuters) – Ermenegildo Zegna has agreed to list in New York this year by combining with a U.S. special-purpose acquisition company (SPAC) in a deal that gives the Italian luxury fashion group an enterprise value of $3.2 billion.

It is the latest example of an Italian family-owned fashion business seeking outside investors to bolster their finances and compete more globally, after the industry was hit hard by the coronavirus crisis.

“We could have remained independent for another 100 years, but the moment is appropriate and the world has changed a lot and luxury has become very challenging,” Chief Executive Gildo Zegna told the Financial Times.

Zegna, founded as a textile company in 1910 and now a leading player in formal menswear, will raise $880 million by combining with the U.S. SPAC launched by European private equity group Investindustrial and chaired by Sergio Ermotti, former chief executive at Swiss bank UBS (UBSG.S).

Under the terms…

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